DERIVATIVES AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES

NOTE 9: DERIVATIVES AND HEDGING ACTIVITIES

The fair value of the Company’s outstanding derivative instruments is as follows:

	As at December 31,
	2013		2014
Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	—	$	52
Foreign exchange forward contracts		16		12
Total	$	16	$	64

The Company recorded the fair value of derivative liabilities in “accrued expenses and other payables” on the Company’s consolidated balance sheets.

The increase in unrealized gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows:

	Year ended December 31,
	2012		2013		2014
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	177	$	108	$	(389	)
Foreign exchange forward contracts		69		175		(41	)
	$	246	$	283	$	(430	)

The net (gains) losses reclassified from “accumulated other comprehensive income (loss)” into income, are as follows:

	Year ended December 31,
	2012		2013			2014
Derivatives designated as cash flow hedging instruments:
Foreign exchange option contracts	$	124	$	(266	)	$	337
Foreign exchange forward contracts		71		(249	)		45
	$	195	$	(515	)	$	382

The Company recorded in cost of revenues and operating expenses, a net loss of $195, a net gain of $515 and a net loss of $382 during the years ended December 31, 2012, 2013 and 2014, respectively, related to its Hedging Contracts. In addition, the Company recorded in financial income, net, a net loss of $112 and a net gain of $112 during the years ended December 31, 2012 and 2013, respectively, related to derivatives not qualified as hedging instruments. There were no derivatives not qualified as hedging instruments during 2014.